Implementing effective policies in the built environment requires a step-by-step approach that introduces regulations and considers time for stakeholders to adjust to changes. The process must address diverse needs and set clear deadlines. Drawing from the OECD Global Survey on Buildings and Climate (2024), two starting points are identified: rolling out preparation and implementation roadmap and targeting specific building types. These initial steps can provide clear signals and incentives for future ambitious action.
Global Monitoring of Policies for Decarbonising Buildings
A Multi-level Approach
OECD Urban Studies
Abstract
Given the complexity of the built environment, a systematic approach is essential for effective policy implementation. Regulations should be introduced gradually, giving stakeholders time to adapt. However, this approach requires a multifaceted strategy that considers policy direction and priorities. Specific actions need to be broken down into incremental steps, back casting from future goals. The primary challenge lies in defining the initial step of this process and establishing a long-term roadmap with concrete deadlines for each step.
Drawing from the OECD Global Survey on Buildings and Climate (2024), this chapter outlines two starting points for action.
First, initiating policy development through preparation and implementation plans. This includes refining methodology, engaging stakeholders from the outset, collecting relevant data and conducting thorough feasibility studies. By preparing incrementally, governments can ensure that policies are well-informed, effectively communicated and aligned with the needs and capabilities of stakeholders. This groundwork sets a solid foundation for successful implementation and facilitates adjustments based on early feedback and insights gained during the preparation phase.
Second, beginning with targeted building types – such as public/private, non-residential/ residential or large/small – and progressively expanding the scope based on trial outcomes and country-specific priorities. Governments can prioritise feasibility of the policy implementation as well as impact of the action when selecting initial building types.
It is important to note that the first step alone does not complete the process. Subsequent steps are necessary to provide stakeholders and the market with clear signals for forthcoming years.
Before rolling out comprehensive policies, it is essential to develop a detailed plan outlining the necessary actions for effective policy implementation. This holds particularly true for decarbonising buildings, where establishing methods to evaluate energy and environmental performance is vital. Governments can begin by initiating pilot projects involving various stakeholders to develop a methodology suitable for national application. This step-by-step approach enables iterative enhancements, integrating feedback and expertise from pilot initiatives and expert consultations.
For example, France’s RE2020 marks as a significant advancement in decarbonising new buildings as it considers not only energy consumption but also carbon emissions, including embodied carbon. However, the development of this policy was undertaken progressively. Prior to its implementation, France undertook comprehensive steps to lay the groundwork for effective and inclusive sustainability measures (Ministry of Ecological Transition and Territorial Cohesion, 2023[1]).
At the core of this process was the establishment of the E+C- experiment in 2016, aimed at fostering the construction of new buildings with enhanced energy efficiency (E+) and reduced carbon emissions (C-). This initiative involved the collaborative development of the Energy-Carbon Framework, an evaluation framework that outlined energy and environmental indicators, calculation principles and data utilisation. Notably, this framework incorporated life cycle analysis (LCA), ensuring a comprehensive assessment of buildings’ environmental impacts (Ministry of Ecological Transition and Territorial Cohesion, 2023[1]).
Following expert work and technical preparatory phases, a major consultation phase commenced in early 2019, led by the government and the High Council for Construction. This inclusive process allowed all stakeholders in the construction sector to contribute to the refinement of environmental assessment methods, data production, regulatory requirements, and professional support systems. Analysis reports from expert groups, as well as feedback from the ongoing E+C- experiment, informed this consultation phase (Ministry of Ecological Transition and Territorial Cohesion, 2023[1]).
Based on the proposals generated during the consultation, the High Council for Construction presented recommendations to the administration for consideration. These recommendations served as the foundation for determining energy and environment performance calculation in RE2020 policies.
Since its enforcement in January 2022, RE2020 has targeted new residential buildings, and the scope of the coverage is set to extend further to office and education buildings subsequently. The RE2020 will be reinforced gradually in 2025, 2028 and 2031, within various types of buildings. (Ministry of Ecological Transition and Territorial Cohesion, 2021[2]). By 2031, for example, the carbon emissions for constructing single-family homes, including site-specific emissions, will see a significant decrease. The maximum threshold will drop from 640 kgCO2/ m2 in 2022 to 415 kgCO2/ m2 in 2031. For multi-family housing, this ceiling will be reduced from 740 to 490 kgCO2/ m2 (Ministry of Ecological Transition and Territorial Cohesion, 2021[2]).
Taking the first step is crucial. Governments should start by initiating actions on targeted buildings. The first proposed measures should be feasible and high-impact. Subsequently, governments can expand these efforts to encompass the entirety of the building stock or other carbon emission phases. This step-by-step approach allows for the gradual implementation of measures, ensuring both effectiveness and feasibility in advancing toward decarbonisation objectives.
Starting with low-hanging fruits should be a priority
Targeting larger architectural firms behind large non-residential buildings to set examples
Japan aims to achieve net zero energy for buildings by 2050 and all new buildings reach net zero level by 2030. However, small and medium-sized businesses constitute a significant portion of Japan’s building sector, and their aging workforce face challenges in adopting new techniques such as evaluating building energy efficiency performance.
To address this challenge, Japan introduced the mandatory standards on energy efficiency for large-scale (over 2 000 m2) non-residential buildings in 2017, typically designed by larger architectural firms with sufficient skills. These standards are set to be upgraded in 2024 and 2030 to further improve energy efficiency (Ministry of Land, Infrastructure, Transport and Tourism of Japan, n.d.[3]).
Subsequently, mid-scale non-residential buildings were targeted (over 300 m²), with the introduction of standards in 2021 and scheduled upgrades in 2026 and 2030. Finally, small-scale non-residential and residential buildings will need to comply with the standards in 2025, with plans to strengthen them by 2030 (Figure 3.1) (Ministry of Land, Infrastructure, Transport and Tourism of Japan, n.d.[3]).
This approach aims to enable architects, carpenters, SMEs, local authorities and other stakeholders to prepare adequately, ensuring a smoother transition to higher energy performance standards and steady enforcement.
Showcasing public buildings as testbeds
Leveraging government ownership, the decarbonisation of public buildings enables governments to pilot and showcase the effectiveness of various decarbonisation policies and technologies before scaling them up. These buildings can lead by example, inspiring the rest of the buildings to follow suit.
In Lithuania, a notable initiative mandates that newly constructed public buildings incorporate at least 50% wood and organic materials since November 2024. Furthermore, starting from 2025, public buildings must adhere to specific sustainable building schemes such as BREEAM and LEED, FITWEL, etc (Ministry of Environment Republic of Lithuania, n.d.[4]).
Singapore aims to make 80% of new buildings achieve Super Low Energy Label (SLE) from 2030 onwards. Since 2021, under the GreenGov.SG initiative, all new and retrofitted public buildings in Singapore must meet the stringent Green Mark Platinum Super Low Energy (SLE) standard, ensuring the highest level of energy performance. This initiative has resulted in 39 buildings achieving significant energy savings, equivalent to at least 60% decrease in used energy compared to 2005 levels (Ministry of Sustainability and the Environment of Singapore, 2022[5]).
In Brazil, since 2014, new federal buildings and renovations exceeding 500 m² must attain level A in the National Label of Energy Conservation for Buildings. Additionally, as per Ordinance 23 of 2015, federal institutions must develop Sustainable Logistic Plans, ensuring that building maintenance procurement prioritises energy, water and paper savings, among other sustainable strategies (Ministry of Mines and Energy of Brazil, 2020[6]).
France is demonstrating the potential of targeting public buildings through its Green Fund (Fonds vert), which is dedicated to supporting local governments in their energy retrofitting initiatives. This fund allocates EUR 500 million to the energy renovation of schools, which account for half of the surface area of local public buildings. In 2023, one-third of all accepted applications for energy renovation were submitted for school buildings. The energy renovation of public buildings contributes to the national objective of reducing energy consumption by 40% by 2030 and by 60% by 2050 for all tertiary buildings with a floor area of more than 1 000 m2 (Ministry of Ecological Transition, 2023[7]).
Targeting large-emitters including large buildings, worst-performing buildings and upfront carbon will have high impact
Large buildings as visible targets
Large buildings typically have a more significant energy footprint and emit higher levels of carbon compared to smaller structures. Therefore, targeting large buildings first allows governments to make a substantial impact on overall energy consumption and carbon emissions, leading to more visible and quantifiable results. In addition, by starting with large buildings, governments can leverage economies of scale and develop and refine technologies before implementing them in smaller buildings.
Korea’s Zero Energy Building (ZEB) Certification starts targeting large buildings. Since 2020, public buildings larger than 1 000 m2 were required to meet ZEB 5 level. From 2023, public buildings larger than 500 m2 were required to meet ZEB 5 level (Zero Energy Buildings of Korea, n.d.[8]). In the city of Vancouver (Canada), starting from 2023, commercial buildings exceeding 100 000 square feet (approximately 9 290 m²) are required to report their annual energy use and carbon emissions (City of Vancouver, n.d.[9]). Under the city of New York’s (the United States) Local Law 97, most buildings over 25 000 square feet (approximately 2 320 m²) are required to meet new energy efficiency and greenhouse gas emissions limits as of 2024, with stricter limits coming into effect in 2030 (City of New York, n.d.[10]).
Targeting worst-performing buildings for greatest impact
Addressing the worst-performing buildings first can lead to significant reductions in overall emissions. This approach maximises the impact of decarbonisation efforts as the worst-performing buildings typically have both the highest energy consumption and carbon emissions. The EU’s new revision of the EPBD is in alignment with this approach by reinforcing the concept of Minimum Energy Performance Standards (MEPS) which aim to phase out worst performing buildings (European Commission, 2024[11]).
However, phasing out the worst-performing buildings should be a gradual process as building owners and stakeholders need sufficient time to adjust to the new regulations. Owners have their individual timelines for construction or renovation projects, alongside the need to secure finances for such endeavours. Additionally, sufficient time must be allocated to inform all building owners about the impending enforcement of these stringent regulatory measures.
France’s MEPS exemplifies this approach. Housing units consuming more than 450 kWh of final energy per square meter per year cannot be rented starting from 1 January 2023. The same rental restrictions will apply to buildings classified as G starting from 2025; buildings classified as F starting from 2028; buildings classified as E starting from 2034 (Ministry of Ecological Transition and Territorial Cohesion, 2024[12]).
Reducing upfront carbon for immediate impact
Unlike operational carbon emissions, which accumulate over the building’s lifespan, embodied carbon emissions occur during construction and demolition. By targeting upfront carbon, governments can immediately reduce the environmental impact of new construction projects. Sweden provides an exemplary case for this gradual approach. Starting from 1 January 2022, Sweden introduced a climate declaration requirement for new buildings, which mandates developers to calculate the climate impact during the construction stage (Boverket, 2023[13]).
Currently, only upfront carbon (modules A1 to A5) needs to be declared. The reasons for targeting the upfront carbon are multifaceted. First, emissions at the construction stage currently represent a large share of climate impacting emissions across building’s life cycle. Second, it is possible to verify upfront carbon as opposed to calculations of the future emissions. The upfront carbon can be quantified based on emissions data of each material whereas estimating future emissions is more challenging due to numerous variables that evolve over the buildings’ lifespan. Last, curbing upfront carbon means the benefits are realised right away, as opposed to strategies that aim to reduce emissions over the long term (Boverket, 2018[14]).
Looking ahead to 2027, or at the earliest to 2025, the plan includes not only stricter values for A1 to A5 but also extension of climate declaration for operational and end-phase of building life cycle (namely, modules B2, B4, B6, C1 and C4) (Boverket, 2023[13]). Moreover, Sweden is now preparing limit values as early as of July 2025 for modules A1 to A5 (Boverket, 2023[15]). This stepwise expansion ensures a comprehensive approach to managing the climate impact across various aspects of the building life cycle while giving enough time for all stakeholders to adjust to changes.
The journey to carbon neutrality requires a well-defined roadmap. In parallel to targeting specific buildings, governments are establishing a comprehensive plan built on long-term objectives, with achievable milestones guiding progress. For a successful roadmap, clarity is crucial. Stakeholders, including citizens and businesses, need to understand the resources required to achieve carbon neutrality and proactively align their strategies with anticipated regulatory changes.
The city of Vancouver (Canada) exemplifies the importance of such a roadmap. Their plan targets a 45% reduction in emissions by 2030, as compared to 2010 levels. Subsequently, carbon neutrality should be reached by 2050 in the region (Metrovancouver, n.d.[16]). The city of Vancouver provides a clear example of the importance of such a roadmap through its regulatory requirements. By creating a clear and comprehensive roadmap, involving diverse stakeholders, and utilising a variety of tools, governments can effectively guide their communities towards a carbon neutral future (Table 3.1) (City of Vancouver, n.d.[9]).
References
[13] Boverket (2023), Climate declaration for new buildings - Boverket, https://www.boverket.se/en/start/building-in-sweden/contractor/tendering-process/climate-declaration/#:~:text=The%20act%20on%20climate%20declarations,buildings%20that%20require%20building%20permits. (accessed on 1 February 2024).
[15] Boverket (2023), Limit values for climate impact from buildings and an expanded climate declaration, https://www.boverket.se/en/start/publications/publications/2023/limit-values-for-climate-impact-from-buildings/ (accessed on 1 February 2024).
[14] Boverket (2018), Klimatdeklaration av byggnader, https://www.boverket.se/globalassets/publikationer/dokument/2018/klimatdeklaration-av-byggnader_slutrapport.pdf (accessed on 19 April 2024).
[10] City of New York (n.d.), , https://www.nyc.gov/site/sustainablebuildings/ll97/local-law-97.page (accessed on 16 April 2024).
[9] City of Vancouver (n.d.), , https://vancouver.ca/green-vancouver/energize-vancouver.aspx#:~:text=GHGi%20limits%20come%20into%20effect,reporting%20deadline%3A%20June%201%2C%202027 (accessed on 26 February 2024).
[11] European Commission (2024), , https://ec.europa.eu/commission/presscorner/detail/en/qanda_24_1966 (accessed on 14 April 2024).
[16] Metrovancouver (n.d.), , https://metrovancouver.org/services/air-quality-climate-action/climate-2050.
[7] Ministry of Ecological Transition (2023), LE FONDS VERT pour l’accélération de la transition écologique dans les territoires Guide à l’attention des décideurs locaux GUIDE À L’INTENTION DES DÉCIDEURS LOCAUX, https://www.ecologie.gouv.fr/sites/default/files/FONDS%20VERT%20A4%20-%2040pages-%20page-WEB.pdf.
[12] Ministry of Ecological Transition and Territorial Cohesion (2024), , https://www.ecologie.gouv.fr/diagnostic-performance-energetique-dpe (accessed on 16 April 2024).
[1] Ministry of Ecological Transition and Territorial Cohesion (2023), , https://www.ecologie.gouv.fr/experimenter-construction-du-batiment-performant-demain-0 (accessed on 17 April 2024).
[2] Ministry of Ecological Transition and Territorial Cohesion (2021), DOSSIER DE PRESSE - RE2020 Éco-construire pour le confort de tous, https://www.ecologie.gouv.fr/sites/default/files/2021.02.18_DP_RE2020_EcoConstruire_0.pdf (accessed on 29 May 2024).
[4] Ministry of Environment Republic of Lithuania (n.d.), , https://www.sustainability.gov/pdfs/lithuania-nzgi-roadmap.pdf (accessed on 16 April 2024).
[3] Ministry of Land, Infrastructure, Transport and Tourism of Japan (n.d.), , https://www.mlit.go.jp/en/ (accessed on 16 April 2024).
[6] Ministry of Mines and Energy of Brazil (2020), , https://www.gov.br/mme/pt-br/assuntos/secretarias/sntep/cooperacao-brasil-japao-em-conservacao-de-energia/relatorios-e-apresentacoes/dialogue-3-brazil-buildings.pdf (accessed on 26 February 2024).
[5] Ministry of Sustainability and the Environment of Singapore (2022), GREENGOV.SG Report for financial year 2022, https://www.mse.gov.sg/files/resources/greengovsg-report-fy2022.pdf (accessed on 26 February 2024).
[8] Zero Energy Buildings of Korea (n.d.), , https://zeb.energy.or.kr/BC/BC00/BC00_01_001.do (accessed on 15 April 2024).